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Productivity Council of India

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Productivity Council of India
NameProductivity Council of India
Formation1958
TypePublic sector organization
HeadquartersNew Delhi
LocationIndia
Leader titleChairman

Productivity Council of India The Productivity Council of India is a national institution established to enhance industrial and organizational productivity across India. It operates through research, training, consultancy, and policy advisory functions, engaging with a range of public and private institutions. The Council works alongside national bodies, state agencies, and international organizations to promote best practices in manufacturing, services, and public administration.

History

The Council was founded in the late 1950s during a period of post-independence industrial expansion influenced by planners and institutions such as Jawaharlal Nehru, Planning Commission (India), Ministry of Steel, Ministry of Commerce and Industry (India), and Bureau of Industrial Costs and Prices. Early collaborators included Indian Institute of Science, Tata Institute of Fundamental Research, All India Council for Technical Education, Indian Institutes of Technology, and National Productivity Council. Over subsequent decades it engaged with landmark initiatives and commissions like the Five-Year Plans of India, Industrial Policy Resolution, 1956, Board of Trade (India), Export Promotion Council and companies such as Tata Steel, Bharat Heavy Electricals Limited, Hindustan Aeronautics Limited, Steel Authority of India Limited and Indian Oil Corporation. The Council’s timeline intersected with events and reforms including the Green Revolution in India, Licence Raj, Economic liberalisation in India, and the creation of institutions like Small Industries Development Bank of India, Steel Authority of India Limited (SAIL), and National Manufacturing Policy (India).

Mandate and Objectives

The Council’s mandate encompasses productivity assessment, capacity building, and advisory roles interfacing with ministries and agencies such as Ministry of Micro, Small and Medium Enterprises (India), Ministry of Heavy Industries and Public Enterprises (India), Ministry of Labour and Employment (India), Reserve Bank of India, and NITI Aayog. Objectives include improving operational efficiency in organizations such as Railway Board, Air India, Bharat Electronics Limited, Oil and Natural Gas Corporation, and Power Grid Corporation of India. It emphasizes standards promoted by bodies like Bureau of Indian Standards and international frameworks advocated by International Labour Organization, United Nations Industrial Development Organization, World Bank, Asian Development Bank, and World Economic Forum.

Organizational Structure

The Council’s governance has included representatives from ministries, public sector undertakings, and industry federations such as Confederation of Indian Industry, Federation of Indian Chambers of Commerce & Industry, NASSCOM, ASSOCHAM, and Indian Chamber of Commerce. It typically organizes functional divisions mirroring units at National Productivity Council, Central Board of Irrigation and Power, Food Corporation of India, and National Sample Survey Office with departments for research, training, quality management, and consultancy. Advisory committees have featured experts associated with institutions like Indian Statistical Institute, All India Institute of Medical Sciences, Indian Space Research Organisation, Council of Scientific and Industrial Research, and Reserve Bank of India committees.

Programs and Initiatives

The Council has run programs oriented to sectors including steel, textiles, chemicals, pharmaceuticals, information technology, and services working with entities such as Maruti Suzuki India, Infosys, Wipro, Larsen & Toubro, Mahindra & Mahindra, GlaxoSmithKline Pharmaceuticals, Sun Pharmaceutical Industries, and Bajaj Auto. Initiatives have paralleled schemes like Make in India, Skill India, Digital India, Atal Innovation Mission, Startup India, and National Skill Development Mission. The Council deployed tools and methodologies inspired by Six Sigma, Total Quality Management, Lean manufacturing, Kaizen, ISO 9001, ISO 14001, and Occupational Safety and Health Administration frameworks in collaboration with training partners such as Indian Society for Quality and academic partners like Indian Institutes of Management, Indian Institute of Management Ahmedabad, Indian Institute of Management Bangalore, and Indian Institute of Management Calcutta.

Partnerships and Collaborations

Collaborative networks have included bilateral and multilateral ties with organizations such as United Nations Development Programme, World Health Organization, International Finance Corporation, United Nations Industrial Development Organization, Asian Productivity Organization, and Asian Development Bank. Domestic partnerships have spanned State Industrial Development Corporations, Small Industries Service Institutes, Central Board of Secondary Education, National Council of Educational Research and Training, and sectoral regulators such as Telecom Regulatory Authority of India and Securities and Exchange Board of India. The Council has also worked with international research universities including Massachusetts Institute of Technology, Stanford University, University of Cambridge, University of Oxford, National University of Singapore, and Tsinghua University.

Impact and Achievements

Reported outcomes attributed to the Council include productivity improvements in manufacturing plants of Bharat Forge, Hindustan Petroleum, Cochin Shipyard Limited, and Garden Reach Shipbuilders & Engineers, efficiency gains in public utilities such as Brihanmumbai Municipal Corporation, Delhi Metro, Bangalore Metro Rail Corporation Limited, and Greater Chennai Corporation, and workforce upskilling linked to programs run with National Skill Development Corporation, Apprenticeship Training Scheme (India), and Sector Skill Councils. Contributions have been recognized by awards and acknowledgments from bodies like Ministry of Commerce and Industry (India), Department for Promotion of Industry and Internal Trade, Quality Council of India, Bureau of Indian Standards, Indian Society for Training and Development, and regional chambers such as Pune Chamber of Commerce and Industry.

Criticisms and Challenges

Critics have cited issues including overlap with institutions such as National Productivity Council and Quality Council of India, constraints resembling those faced by Public Sector Undertaking (India), limited reach compared with private consultancies like McKinsey & Company, Boston Consulting Group, PricewaterhouseCoopers, and bureaucratic hurdles similar to those noted for Indian Administrative Service reforms. Other challenges include adapting to disruptive technologies promoted by Amazon (company), Google LLC, Microsoft, IBM, and to policy shifts following Goods and Services Tax (India), Demonetisation in India, and broader Economic liberalisation in India reforms.

Category:Organisations based in India